Gas Tax to Decrease 50.6 Won

The gasoline tax will be decreased 50.6 won, about 4 cents per litre, from May 6 which will stay the domestic gas price at around the 1-dollar level per litre.
The Ministry of Finance and Economy on April 29 announced that it decided to cut the consumption tax in order to prevent a rise in current prices due to hikes in intenational oil prices.
As of late April, the international crude oil price reached 16 dollars per barrel, the first time in 14 months that it has gone above the 16-dollar mark.
However, the government will not include a corresponding drop on the tax imposed on propane or LPG, liquefied natural gas(LNG).
Chung Duk Koo, deputy minister with the Ministry of Finance and Economy, asserted, 'We decided to reduce the tax as the general public is suffering from lowered salaries and a higher unemployment rate.'
The tax cut is expected to cost the government 400 million dollars in lost tax revenue per year, while allowing gasoline consumers to potentially save 150 dollars each year.
Hwashik Bong : trojans@joongang.co.kr